Foxconn has taken yet another step closer to producing cars. On July 24, parent company Hon Hai Technology Group reported that its subsidiary Foxconn Technology Group had signed a strategic cooperation agreement with the Henan provincial government.
Under the agreement, Foxconn will create trial production plants for electric vehicles and solid-state batteries in the Zhangzhou Airport Economic Comprehensive Experimental Zone. The EV trial production center plans to build a world-class, high-end demonstration production line for new energy vehicles.
Foxconn is perhaps best known as the manufacturer of the iPhone, and it seems that the company is also looking to do contract manufacturing work for EVs. The demonstration plant aims to have a world class lighthouse factory to provide manufacturing services to well-known automobile brands from both China and overseas.
Foxconn is investing a total of around 1 billion yuan (138 million USD), and the construction area in Zhengdong New District will be about 700 acres and consist of seven centers including a business headquarters, R&D center, and engineering center, industrial research institute, marketing center, and supply chain management center.
In recent years itβs been no secret that Foxconn has been keen to enter the electric car manufacturing business. Involvement began as early as 2010 when Foxconn provided Tesla with components such as the central control screen. This launched the companyβs path into the automotive supply chain industry.
Despite Foxconn displaying various vehicles over the last few years, the company has yet to put any into production. These include the Model T bus and the Model V pickup truck, and in terms of cars, the Model C SUV, Model E sedan, and Model B hatchback. The company has an open EV platform that includes technologies such as x-by-wire, which can control the steering, acceleration, and braking using electrical connections rather than mechanical connections.
Foxtron a joint venture between Foxconn and Taiwanβs Yulon Auto Group is reportedly eyeing the North American market for the Model C SUV in 2025. Yulon is the parent group of the Luxgen brand, which previously had a joint venture with Dongfeng in China.
Foxconn has also bought the Lordstown car factory in Ohio, USA, which originally belonged to General Motors.
In January 2024, Foxconn set up an NEV company in Henan province with a registered capital of 500 million yuan (69 million USD). The company is no stranger to Zhengzhou, where it already operates the worldβs largest iPhone factory.
Editorβs note:
Foxconn has achieved incredible success in the electronics business with its contract manufacturing business model. It seems that the company is looking to replicate this with electric vehicles. However, given the companyβs lack of expertise in this area, it might be difficult to become a serious player. Contract manufacturing, however, does appear to be becoming more common in China than before, as evidenced by deals such as the former one between Nio and JAC and the current one between Xiaomi and BAIC.
Sources: Fast Technology, Global Times, Focus Taiwan, Foxconn
